This is Part I of the Open Media Research Institute's Daily Digest. Part I
is a compilation of news concerning Russia, Transcaucasia and Central Asia.
Part II, covering Central, Eastern, and Southeastern Europe is distributed
simultaneously as a second document. Back issues of the OMRI Daily Digest, and
other information about OMRI, are available through OMRI's WWW pages:
http://www.omri.cz/Index.html

NOTE: The OMRI Daily Digest was not published from 23 December to 27
December.

RUSSIA

YELTSIN BACK IN THE KREMLIN. President Boris Yeltsin described himself as
"ready for battle" as he returned to work in the Kremlin on 23 December, seven
weeks after his 5 November bypass operation, Russian and Western media
reported. Heart problems had kept him away from the office for nearly six
months. However, Communist Party leader Gennadii Zyuganov doubted Yeltsin's
stamina to withstand a heavy workload, saying Russia's current condition
demanded a president who can work "at least 15 hours a day." Speaking to Ekho
Moskvy on 22 December, Aleksandr Lebed described Yeltsin as a "sick man" who
was incapable of governing and should step down for the good of the country. On
27 December, Presidential spokesman Sergei Yastrzhembskii said Yeltsin has been
working six to eight hours per day since his return. -- Laura Belin

LAST RUSSIAN TROOPS LEAVE CHECHNYA. The last Russian combat troops from the
205th Motorized Rifle Brigade left Chechnya on 29 December, ahead of the
scheduled 27 January departure date set by President Yeltsin earlier this
month, ITAR-TASS and Reuters reported. A small number of logistical personnel
remain in the republic, and Russian commander Maj.-Gen. Vladimir Sukhoruchenkov
said on 28 December that they will withdraw by 22 January, AFP reported. The
departing troops of the 101st brigade are being housed in unheated barracks and
tents near Stavropol, according to a 29 December NTV report, and are reduced to
begging for food from local residents. On 28 December the Duma passed a
resolution condemning the troop withdrawal as "rash and unthoughtful," arguing
that some 1,000 Russian servicemen are still missing in the republic, many of
them thought to be held captive. -- Peter Rutland

STATE REINTRODUCES MONOPOLY OF ALCOHOL. President Yeltsin attended a
meeting of the Temporary Extraordinary Commission for tax collection on 26
December. He castigated ministers for their failure to clear off pension
arrears, and promised to reintroduce state control on the production and sale
of spirits, ITAR-TASS reported. It was already planned to introduce excise
stamps on all spirits and wines (beer is exempt) from 1 January. The new
monopoly will probably mean tighter licensing requirements for Russia's 600
plus spirits producers, rather than outright nationalization, and restrictions
on retail outlets. The share of federal-budget revenue generated from alcohol
sales fell from an estimated one-third during the Soviet period to 3.5% in
1996, ITAR- TASS reported on 23 December. The government hopes to triple that
figure to around 24 trillion rubles in 1997. -- Peter Rutland

DUMA APPROVES BUDGET . . . The State Duma on 28 December voted in favor of
approving the government's 1997 budget on third reading by 243 votes to 117,
AFP reported. Of the organized factions, only the Liberal Democratic Party
voted against. Those who voted in favor were less than enthusiastic: Duma
Speaker Gennadii Seleznev said "it may be the worst budget ever," ITAR-TASS
reported. The budget, which was approved on first reading on 15 December, will
face a fourth reading in January to clear up various technical changes.
ITAR-TASS reported on 27 December that federal taxation will raise 25 trillion
rubles in December, up from 20 trillion in November. Federal tax collection in
1996 will total 198 trillion rubles, which is only 80% of the target level. --
Peter Rutland

. . . INTRODUCES NEW TAXES. The Duma on 27 December approved the
introduction of a 0.5% tax on purchases of foreign currency, ITAR-TASS
reported. Russian banks sold 195 trillion rubles worth of foreign currency in
January-October 1996, and the new tax is expected to raise 2.3 trillion rubles
($400 million) in 1997. Critics suggested that the tax is too low to encourage
people to hold their savings in rubles; others suggested it may encourage
black-market operations. The Duma also introduced a new 20% tax on the interest
on ruble bank deposits (15% on foreign-currency accounts) but only if the
interest exceeds the Central Bank's refinancing rate. -- Peter Rutland

FEDERATION COUNCIL ADOPTS LAW ON JUDICIAL SYSTEM . . . Using an unusual
voting procedure to allow deputies not present in Moscow to cast ballots, the
Federation Council on 26 December approved the constitutional law on the
judicial system by 140 votes to 18, Russian media reported. The previous
attempt to gain the three-fourths majority needed to adopt the law had failed
by two votes. Among other provisions, the law stipulates that judges will be
appointed by the Russian president, and all courts must be funded entirely by
the federal budget (see OMRI Daily Digest, 5 December 1996). The law was passed
over vocal opposition from leaders of Russia's republics, especially Tatarstan
and Bashkortostan, who complained that it would infringe on their sovereignty
and argued that regional courts should be able to carry out proceedings in
local languages, according to the 26 December Kommersant- Daily. -- Laura
Belin

. . . BUT REJECTS LAW ON GOVERNMENT. The Federation Council on 25 December
rejected the draft law on government by a vote of 102 to 19, Nezavisimaya
gazeta and Kommersant-Daily reported the next day. Deputies objected to a
provision that would have forced the president to get the Duma's consent before
dismissing the prime minister, according to ITAR- TASS. Currently the Duma has
the power to approve only a prime minister's nomination. The draft law would
have made the "power ministers" (defense, interior, and head of the security
service) subordinate to the prime minister. Currently the power ministers
report directly to the president. -- Laura Belin

LEBED ANNOUNCES PLANS FOR NEW PARTY. At a 27 December conference of his
Honor and Motherland movement, Aleksandr Lebed announced that he will found a
Russian People's Republican Party early next year, Russian media reported.
Lebed said his new party would be a "third force" for those dissatisfied with
both the current authorities and the Communists; he added that there were
plenty of bankers and industrial groups willing to finance his efforts. Party
of Workers' Self-Government leader Svyatoslav Fedorov attended the conference
and is likely to join Lebed's new party. -- Laura Belin

ANOTHER SEVEN INCUMBENTS RE-ELECTED . . . One republican president and five
governors were re-elected on 22 December, the busiest day yet during the last
four months of regional elections, Russian media reported the next day. Mikhail
Nikolaev held onto the presidency in Yakutiya with about 60% of the vote.
Successful incumbent governors were Anatolii Yefremov of Arkhangelsk Oblast
(60%), Gennadii Igumnov of Perm Oblast (about 65%), Yurii Goryachev of
Ulyanovsk Oblast (42%), Aleksandr Nazarov of Chukotka Autonomous Okrug (62%),
and Gennadii Nedelin of Taimyr Autonomous Okrug (64%). Anatolii Yakimov of
Evenk Autonomous Okrug led by a mere 554 votes: the election was subsequently
annulled. The Tyumen Oblast election, also held on 22 December, will be decided
by a runoff in early 1997. -- Anna Paretskaya in Moscow

. . . WHILE OPPOSITION CANDIDATES WIN SIX REGIONAL RACES. Also on 22
December, Aleksei Lebed, the younger brother of Aleksandr Lebed, was elected
head of the Republic of Khakasiya with 71% of the vote. Communist-backed
candidates were elected governor in Krasnodar Krai (Nikolai Kondratenko swept
to victory with more than 82% of the vote), Kostroma Oblast (Viktor Shershunov
received 64%), Ryazan Oblast (Vyacheslav Lyubimov won 55%) and Chelyabinsk
Oblast (Petr Sumin gained 55%). According to preliminary results, the 29
December runoff election in Volgograd Oblast was won by Communist-backed
Nikolai Maksyuta, who gained 51% to 44% for incumbent Governor Ivan Shabanov,
Radio Rossii reported. Maksyuta had finished second in the first round. -- Anna
Paretskaya in Moscow

MARII-EL PRESIDENT LOSES AMID ELECTION SCANDAL. The president of the
Marii-El Republic, Vyacheslav Zotin, received less than 10% of the vote in the
republic's 22 December election, having tried to cancel the election by decree
a few days before the vote, Russian media reported. Zotin did not advance to
the second round, to be contested in January between Communist Party nominee
Vladislav Kislitsin and Liberal Democratic Party candidate Leonid Markelov.
They won 47% and 30% of the vote, respectively. -- Anna Paretskaya in Moscow

CHINESE PREMIER IN MOSCOW. Li Peng met President Yeltsin and Prime Minister
Viktor Chernomyrdin during his 26-28 December official visit, international
agencies reported. Yeltsin said he was "very pleased" with the current state of
bilateral ties, and he and Li Peng confirmed that Chinese President Jiang Zemin
will visit Moscow in April. The two countries issued a joint communique hailing
the "huge potential" of bilateral cooperation and pledging to build an "equal
and reliable partnership." Several bilateral agreements were also signed,
covering nuclear-power-plant construction, central-bank cooperation, and
finalizing the sale of SU-27 fighters and related production technology to
China. Segodnya on 28 December noted that warming Russian-Chinese ties were
intended as Moscow's "answer to the United States" in response to such Western
policies as NATO enlargement. -- Scott Parrish

PRIMAKOV IN TEHRAN. Russian Foreign Minister Yevgenii Primakov met with his
Iranian counterpart, Ali Akbar Velayati, and Iranian President Akbar Hashemi
Rafsanjani during his two-day visit to Tehran on 22-23 December, international
agencies reported. After signing a memorandum of understanding on nuclear
export control with Velayati, Primakov said the two countries adhere to
"internationally accepted norms," and that "no one can condemn" their
cooperation in this area, which includes plans to finish an incomplete nuclear
power station at Bushehr in southern Iran. The U.S., citing proliferation
concerns, has vehemently opposed the project. The two foreign ministers
condemned the Afghan Taliban movement's "violations of human rights," while
Primakov hailed Iran's role in pushing for a negotiated settlement in
Tajikistan. Primakov also said that "foreign military" deployments in the
Persian Gulf undermine regional stability. -- Scott Parrish

RODIONOV: U.S. DRIVE FOR HEGEMONY THREATENS RUSSIA. Addressing a Moscow
conference on CIS military cooperation on 25 December, Russian Defense Minster
Igor Rodionov said that Washington's efforts to "make its world leadership
complete" by relying on an expanded NATO may become a "military threat" to
Russia and other CIS states, Russian and Western agencies reported. Rodionov
added that Turkey, Iran, Pakistan, Japan, China, and other unnamed Asian
countries also pose potential military threats. He urged the formation of joint
CIS military forces and the bolstering of Russian strategic nuclear forces in
response. The Russian Foreign Ministry quickly moved to downplay Rodionov's
remarks, labeling his list of potential adversaries "purely hypothetical."
Rodionov's speech contradicts Moscow's ongoing efforts to build close ties with
Iran and China. Kommersant-daily on 26 December described it as a crude attempt
to frighten other CIS states into closer military cooperation with Moscow. --
Scott Parrish

This is Part I of the Open Media Research Institute's Daily Digest. Part I
is a compilation of news concerning Russia, Transcaucasia and Central Asia.
Part II, covering Central, Eastern, and Southeastern Europe is distributed
simultaneously as a second document. Back issues of the OMRI Daily Digest, and
other information about OMRI, are available through OMRI's WWW pages:
http://www.omri.cz/Index.html

NOTE: The OMRI Daily Digest was not published from 23 December to 27
December.

TRANSCAUCASIA AND CENTRAL ASIA

HIGH-RANKING IRANIAN DELEGATION IN ARMENIA. An Iranian delegation headed by
First Vice-President Hasan Habibi concluded a four-day visit to Armenia on 28
December, Noyan Tapan reported. The two sides pledged to boost bilateral
cooperation in communications, energy and industry. Habibi, the highest-ranking
Iranian official to visit Armenia since 1991, said the current state of
Armenian-Iranian relationships is "at the desired level," ITAR-TASS reported.
Armenian President Levon Ter- Petrossyan described Iran's policy in the
Transcaucasus as "balanced" and a "stability factor" in the region. According
to Prime-Minister Armen Sarkisyan, the two countries have "great" potential for
further cooperation. -- Emil Danielyan

KYRGYZ PRESIDENT IN UZBEKISTAN. Kyrgyz President Askar Akayev met his Uzbek
counterpart, Islam Karimov, during a 24-25 December visit to Tashkent,
ITAR-TASS and RFE/RL reported. The two presidents signed a free trade agreement
and discussed the construction of a rail line that would link Uzbekistan to
China via Kyrgyzstan. Uzbekistan agreed to provide Kyrgyzstan with natural gas
at a preferred rate and Kyrgyzstan will reciprocate by delivering electricity
from the Naryn hydro-electric complex. Presidential spokesman Kanybek
Imanaliyev noted that bilateral trade has increased four times to reach $200
million. At Karimov's request, the two leaders signed a treaty that included a
reference to the "eternal friendship" between the neighboring states. -- Bruce
Pannier and Naryn Idinov

NEW TAJIK AGREEMENT FOR PEACE. Tajik President Imomali Rakhmonov and United
Tajik Opposition leader Said Abdullo Nuri signed an agreement in Moscow on 23
December, international media reported. The agreement provides for a general
amnesty, an exchange of all prisoners, and a promise by both sides to create
the necessary conditions for the return of Tajik refugees. Most importantly,
the agreement establishes a reconciliation council to be headed by an
opposition representative. The council will spend 12-18 months reviewing
proposed amendments to the Tajik Constitution. -- Bruce Pannier

UN WORKERS TAKEN HOSTAGE IN TAJIKISTAN. A group led by Rezvon Sadirov freed
sixteen hostages within 24 hours of taking them after their demands were met on
21 December, Western and Russian press reported. Sadirov had threatened to kill
the hostages, including seven UN observers, unless his brother and others held
by the opposition were released. He also claimed his group had planted 30 bombs
in Dushanbe, the capital, and would explode them if his demands were not met.
Sadirov, a former defense minister for the Tajik opposition, was demoted in
1995 and joined government forces last month. -- Bruce Pannier

BACK ISSUES
Back issues of the OMRI Daily Digest are available through the World Wide
Web, by FTP and by E-mail.
WWW
http://www.omri.cz/Publications/DD/Index.html

FTP
ftp://FTP.OMRI.CZ/Pub/DailyDigest/

REPRINT POLICY
To receive a copy of OMRI's reprint policy, contact OMRIPUB@OMRI.CZ or see
the Web page at
http://www.omri.cz/Publications/Reprint.html

OTHER OMRI PUBLICATIONS

TRANSITION
OMRI publishes the biweekly journal TRANSITION, which contains expanded
analysis of many of the topics in the OMRI Daily Digest. For subscription
information send an e-mail to TRANSITION@OMRI.CZ or visit the Transition Web
page at
http://www.omri.cz/Publications/Transition/Index.html

OMRI ECONOMIC DIGEST
The OMRI Economic Digest is for those who need more detailed economic news
from the region. There is a four-week free trial subscription available; for
more information, write to ECON@OMRI.CZ or go to the OMRI Economic Digest Web
page at
http://www.omri.cz/Publications/ED/Index.html

RUSSIAN REGIONAL REPORT
The Russian Regional Report is a weekly publication (published every
Wednesday) initially focusing on the local elections taking place throughout
Russia during the Fall of 1996. After the election season is over, the Russian
Regional Report will continue, turning to broader social, political, and
economic issues of Russia's regions. To Novemberveument. Back issues of
subscribe, please follow these instructions:
1) Compose a message to:
MAJORDOMO@OMRI.CZ
2) In the body of the message, write:
SUBSCRIBE REGIONS Your Name
Fill in your own first and last names where shown 3) Send the
message

PURSUING BALKAN PEACE
Pursuing Balkan Peace contains the latest news about developments in the
Republic of Bosnia-Herzegovina and the other countries of Southeastern Europe.
Published every Tuesday, it contains both brief news summaries and longer
essays on specific events or issues facing the people of the region. To
subscribe, please follow these instructions: 1) Compose a message to:
MAJORDOMO@OMRI.CZ
2) In the body of the message, write:
SUBSCRIBE BALKAN-PEACE Your Name
Fill in your own first and last names where shown 3) Send the
message

RUSSIAN-LANGUAGE TRANSLATION OF THE OMRI DAILY DIGEST The full text of the
OMRI Daily Digest is translated into Russian and distributed the following
day.
1) Compose a message to:
MAJORDOMO@ISF.RU
2) In the body of the message, write:
SUBSCRIBE OMRI Your Name
Fill in your own name where shown
3) Send the messageTo: OMRI-L
From: OMRI Publications <omripub@omri.cz> Subject: OMRI DAILY DIGEST
II, No. 246, 30 December 1996 Cc:
Bcc:
X-Attachments:

OMRI DAILY DIGEST
No. 246, Part II, 30 December 1996

This is Part II of the Open Media Research Institute's Daily Digest. Part
II is a compilation of news concerning Central, Eastern, and Southeastern
Europe. Part I, covering Russia, Transcaucasia and Central Asia, is distributed
simultaneously as a second document. Back issues of the OMRI Daily Digest, and
other information about OMRI, are available through OMRI's WWW pages:
http://www.omri.cz/Index.html

This is Part I of the Open Media Research Institute's Daily Digest. Part I
is a compilation of news concerning Russia, Transcaucasia and Central Asia.
Part II, covering Central, Eastern, and Southeastern Europe is distributed
simultaneously as a second document. Back issues of the OMRI Daily Digest, and
other information about OMRI, are available through OMRI's WWW pages:
http://www.omri.cz/Index.html

NOTE: The OMRI Daily Digest was not published from 23 December to 27
December.

CENTRAL AND EASTERN EUROPE

NEWS FROM BELARUS. The opposition parliament has set up a shadow cabinet
and appointed its deputy speaker, Henadz Karpenka, as prime minister, NTV
reported on 28 December. It also appealed to the UN, the OSCE, and the Council
of Europe to support democratic forces in Belarus. The same day, Radio Rossii
reported that President Alyaksandr Lukashenka has denied planning to hold a
referendum on unification with Russia and suggesting that he be appointed
leader of a unified state. He said the idea was "absurd, legalistic nonsense."
Meanwhile, chief military prosecutor Maj.-Gen. Anatol Hlyukau has resigned from
his post. The official reason was that Hlyukau wanted to retire. But according
to NTV, the former prosecutor-general Vasil Kapitan had requested that Hlyukau
be allowed to continue in his post for another five years, which suggests that
Lukashenka declined to prolong Hlyukau's term in office. Finally, Reuters
reported that Belarus is seeking a $3.5-4 billion investment to build its first
nuclear power plant, which would ease its dependence on energy from Russia. --
Ustina Markus

BLACK SEA FLEET UPDATE. The Russian Federation Council called on President
Boris Yeltsin on 26 December to impose a moratorium on any agreements over the
Black Sea Fleet until a special commission examines the status of the main
base, Sevastopol, NTV reported. The following day, Moscow Mayor Yurii Lukhkov
informed Ukraine's Foreign Ministry that he intends to visit the city in
January, despite the ministry's threats to declare him persona non grata to
prevent such a visit, Rossiskaya gazeta reported. Luzhkov has repeatedly made
clear that he backs Russian claims to Sevastopol. Meanwhile, Zerkadlo nedeli
reported that Ukrainian President Leonid Kuchma has said he will never agree to
hand Sevastopol over to Russia. He added that if such a step were taken, he
would no longer be president and Ukraine would lose its independence.
Presidential spokesman Sergei Yas-trzembskii said on 27 December that Yeltsin
has not changed his position that "Sevastopol and Crimea are part of Ukraine,"
RFE/RL reported. -- Ustina Markus

MANY LATVIANS FACE CUTS IN SOCIAL BENEFITS. The director of the Latvian
State Social Insurance Fund has said that more than 200,000 Latvian residents
whose employers have failed to make social insurance payments will not be
eligible for unemployment, sickness, maternity, or funeral benefits as of 1
January, BNS reported on 27 December. A new law due to take effect at the
beginning of 1997 states that people will not receive benefits if they do not
have proper work contracts or if their employer has not been paying social
insurance contributions for them. -- Ustina Markus

IS POLAND'S ECONOMY OVERHEATING? Representatives of the government, the
National Bank of Poland (NBP), and the Central Statistical Office (GUS)
estimate that the Polish economy grew by at least 6% in 1996, Polish dailies
report. Data through the end of November indicate that real GDP likely
increased by 5.7%-7.0% this year, largely owing to consumption growth of 9%-10%
and investment spending of 18%-19%. Deputy Prime Minister Grzegorz Kolodko
called 1996 "the Polish economy's best year ever," but NBP and GUS officials
warned that the economy is overheating. GUS President Leszek Zienkowski and NBP
President Hanna Gronkiewicz- Waltz both view Poland's ballooning trade deficit
($6.4 billion in November) as a sign that the consumption boom is
unsustainable, not least because household indebtedness has doubled. Meanwhile,
Gronkiewicz-Waltz has said that the NBP may raise interest rates in 1997. --
Ben Slay

CZECH PRESIDENT RETURNS HOME. Vaclav Havel was released from the hospital
on 27 December, one month after undergoing an operation to remove a malignant
tumor from his right lung, Czech media reported. Doctors at the Prague clinic
where the operation took place said a team of specialists will continue to
watch over the president at his house during the next few days. Presidential
spokesman Ladislav Spacek said Havel is expected to give a shortened version of
his traditional New Year's Day address on 1 January. -- Victor Gomez

SLOVAK SKINHEAD MURDERS ROMANI MAN. An 18-year-old skinhead murdered a Rom
in the central Slovak town of Handlova on 22 December, TASR and CTK reported.
The youth stabbed the 43-year-old Gustav Balaz and his 21- year-old son at the
local bus station. The son had gone to meet his father, who was returning from
work in the Czech Republic. Balaz senior died immediately, while his son was
hospitalized with serious injuries. The skinhead was arrested within hours. He
told the police that he was "proud to be a skinhead" and that he "regretted
that one of the gypsies survived," Novy Cas reported. More than 300 Roma
gathered in Handlova on 27 December for the elder Balaz's funeral. They then
staged a peaceful demonstration against racism. In a letter addressed to the
government, they warned that while "violence, fascism, racism, and civic
intolerance" are growing, the government remains "indifferent." -- Sharon
Fisher

SLOVAK POLITICAL UPDATE. President Michal Kovac on 20 December received an
anonymous letter threatening him with "physical liquidation," CTK reported two
days later. The letter, which also mentioned Constitutional Court Chairman
Milan Cic and opposition representatives, said that people who are against
Slovakia must be executed. Meanwhile, Slovak TV and the private channel VTV
renewed their attacks on Kovac. On 20-21 December, they broadcast a
"documentary report" discrediting both him and his son and featuring two
"secret witnesses" who accused Kovac of paying former secret service agent
Oskar Fegyveres 1 million Austrian schillings (some $90,000) for his testimony
in the Kovac Jr. kidnapping case. Finally, Belgian Prime Minister Jean-Luc
Dehaene visited Slovakia on 23 December. He is the first EU premier to visit
that country for bilateral talks in more than two years. Slovak Prime Minister
Vladimir Meciar renewed calls for a referendum on NATO membership but told
Dehaene he is striving to fulfill conditions for Western integration. -- Sharon
Fisher

HUNGARIAN, ROMANIAN FOREIGN MINISTERS AGREE TO RE-OPEN CONSULATES. Foreign
Minister Laszlo Kovacs and his Romanian counterpart, Adrian Severin, agreed in
Budapest on 27 December to reopen the Hungarian Consulate-General in Cluj and
the Romanian Consulate in Debrecen, Hungarian media reported. Honorary consular
offices are also to be opened in Gyor and Constanta. The agreement comes in the
wake of the signing this fall of the Hungarian-Romanian basic treaty. During a
visit to the Romanian-language school in the southeastern Hungarian town of
Gyula on 28 December, Severin said that it would be preferable for Romania and
Hungary to be admitted into NATO simultaneously. But he added that if one
joined before the other, this would be reason to promote the other's membership
from within the organization. Severin also met with Hungarian President Arpad
Goncz, Prime Minister Gyula Horn, and opposition politicians. It was his first
visit abroad as foreign minister. -- Ben Slay

This is Part I of the Open Media Research Institute's Daily Digest. Part I
is a compilation of news concerning Russia, Transcaucasia and Central Asia.
Part II, covering Central, Eastern, and Southeastern Europe is distributed
simultaneously as a second document. Back issues of the OMRI Daily Digest, and
other information about OMRI, are available through OMRI's WWW pages:
http://www.omri.cz/Index.html

NOTE: The OMRI Daily Digest was not published from 23 December to 27
December.

SOUTHEASTERN EUROPE

SERBIAN PROTESTS ENTER 43RD DAY. Marches and demonstrations are continuing
in up to 47 towns and cities across Serbia, while opposition organizers
announced plans for a gala open-air New Year's Eve party in Belgrade, Nasa
Borba reported on 30 December. Last week, a team of OSCE representatives headed
by former Spanish Prime Minister Felipe Gonzalez backed the opposition's view
that the governing Socialists stole the local elections in Belgrade and 13
other places. Federal Yugoslav Foreign Minister Milan Milutinovic called the
OSCE statement "balanced" but stressed it was not binding on the Serbian
government, international media noted. The opposition, however, demanded the
authorities recognize the report. On 28 December, thousands attended the
funeral of Predrag Starcevic, a teacher who on 24 December became the first
fatality in the ongoing confrontation in the Serbian capital. Opposition leader
Vuk Draskovic blamed the police for his death. And on 29 December, riot police
kept protesters inside Belgrade's Knez Mihailova pedestrian mall and prevented
them from marching. -- Patrick Moore

ARMY, MONTENEGRO PUT PRESSURE ON MILOSEVIC. Opposition leaders issued a
statement on 29 December saying that Milosevic was trying to turn Serbia into a
prison and expressing their intention to defy him. They also charged that he
plans to declare a state of emergency, AFP reported. But some army
representatives and Montenegrin leaders are urging Milosevic to reconsider his
position. The Nis-based 63rd Parachute Brigade and officers from other units
issued an open letter to the Serbian president and to army commander Gen.
Momcilo Perisic expressing their support for the students, Nasa Borba reported
on 30 December. It is unclear, however, how deep support for such views runs in
the army. Meanwhile, Montenegrin President Momir Bulatovic called on Milosevic
to explain his position in public, Nasa Borba added. Prime Minister Milo
Djukanovic and Parliament Speaker Svetozar Marovic, for their parts, have
expressed sympathy for the protesters, the Czech daily Mlada fronta dnes noted.
-- Patrick Moore

SFOR BLOCKS EXHUMATION AT MASS GRAVE SITE. The NATO-led Stabilization Force
on 28 December admitted that its staff blocked a Bosnian government forensic
team from exhuming bodies in a separation zone between the Republika Srpska and
the Bosnian Federation, AFP reported. Some 30 SFOR soldiers barred the forensic
team from working on a site in northeastern Bosnia that is believed to contain
the bodies of 120 Muslims killed after Serbs took Srebrenica in July 1995. SFOR
had previously denied that its troops had taken such action but later said that
the troops involved had failed to report what had happened to their superiors
"in a timely manner." -- Daria Sito Sucic

BOSNIAN SERBS TO FORM PROFESSIONAL ARMY. The Bosnian Serb parliament on 28
December approved a bill on the creation of a professional army, international
agencies reported, citing Bosnian Serb radio. Under the new law, "the
professional armed forces are responsible for defending the territorial
integrity and constitutional order of the Republika Srpska," AFP reported.
There is also a clause--which is aimed at Serbs in
Serbia-Montenegro--stipulating that people without Bosnian Serb citizenship can
volunteer to join the army in case of conflict. Meanwhile, a Bosnian Serb court
on 24 December decided to proceed with the in absentia trial of Bosnian
President Alija Izetbegovic, despite international criticism. -- Daria Sito
Sucic

SERBS BESIEGE CROATS IN EASTERN SLAVONIA ATTENDING CHRISTMAS MASS. Some 50
Orthodox Serbs gathered outside a Roman Catholic church in the town of Ilok, in
eastern Slavonia, during a Christmas Eve midnight mass, international agencies
reported. The Serbs were protesting the holding of the service. About 200 Roman
Catholic Croats who had been displaced from the region during the 1991
Croatian-Serbian war were attending the mass under UN escort. They were trapped
inside the church for three hours before the UN brought in military and
civilian police reinforcements. After the service the Serbs broke into the
church and vandalized the vestry. In neighboring Bosnia-Herzegovina, Croats in
the Bosnian Serb stronghold of Banja Luka went without their Christmas midnight
mass for the fifth consecutive year amid continuing security fears, AFP
reported. -- Daria Sito Sucic

KOSOVO STUDENTS DEMAND EMERGENCY PARLIAMENTARY MEETING. Some 600 students
signed a petition calling for an emergency meeting of the Kosovo shadow-state
parliament, AFP reported on 24 December. The students urged that Parliamentary
Party leader Adem Demaci also participate in the meeting, and they called for
tougher action against Serbian President Slobodan Milosevic. Albanian President
Sali Berisha said that if the Kosovars wanted to gain their rights, they could
not stand idly by during the protests in Belgrade. He also called for peaceful
protests in Kosovo, noting that "it is very clear that [the Kosovars'] problems
will not be solved in Tirana, Belgrade, Washington, London, or Paris [but]
in...Kosovo." He repeated the warning that "Albanians on either side of the
northern border will act as a unit in the event of war." -- Fabian
Schmidt

ROMANIAN PRESIDENT PARDONS ETHNIC HUNGARIAN. Emil Constantinescu on 26
December pardoned Pal Cseresznyes, an ethnic Hungarian who was sentenced to 10
years in prison following inter-ethnic riots in Targu Mures in March 1990,
RFE/RL reported. The move was seen as a conciliatory gesture timed to coincide
with Foreign Minister Adrian Severin's visit to Hungary, which began on the
same day. It was also regarded as a gesture toward the Hungarian Democratic
Federation of Romania (UDMR), a member of the ruling coalition. Gyorgy Frunda,
who was the UDMR presidential candidate in the November elections and also
Cseresznyes's lawyer, repeatedly noted that only ethnic Hungarians and Roma
were sentenced after the riots. Romanians escaped punishment, he stressed. --
Michael Shafir

ROMANIAN ROUNDUP. Foreign Minister Adrian Severin on 24 December announced
that his ministry has recalled a number of ambassadors in an attempt to improve
Romania's image abroad, international media reported. The recalled ambassadors
were serving in Germany, France, Spain, Austria, Israel, Finland, Columbia, and
Costa Rica. Romania's permanent representative at foreign organizations in
Vienna has also been recalled. In addition, Severin noted that Romania's former
monarch, King Michael, will be able to visit the country "without any political
difficulty." In other news, the Romanian government has announced it will
double fuel prices next year to help cover losses caused by the depreciation of
the leu and to meet IMF recommendations, international media reported on 29
December. The price for petrol is to be raised from 990 lei to 1,900 lei per
liter and for diesel from 680 lei to 1,300 lei. -- Michael Shafir

SMIRNOV RE-ELECTED IN TRANSDNIESTER. Igor Smirnov has been re-elected
president of the Transdniester breakaway region, Infotag reported. He won
71.94% of the vote in elections held on 22 December. Vladimir Malakhov, the
only other candidate, polled 19.84%. At 57.1%, turnout was the lowest for
either elections or referendums held in the separatist republic since the
proclamation of independence in September 1990. Smirnov said he intends to
continue working to strengthen Trans- dniestrian statehood and wants to keep
Russian troops in the region until Tiraspol receives "firm guarantees" that the
Transdniestrian problem will not be solved by force. Moldovan President Petru
Lucinschi said the result of the elections should be viewed as a
"recommendation" only. But he added that he is ready to continue the dialogue
with the Tiraspol authorities on granting the region a special status within
Moldova's borders, Infotag reported on 23 December. -- Michael Shafir

MOLDOVA DECLARES STATE OF ALERT DUE TO BAD WEATHER. The Moldovan government
on 29 December declared a state of alert as the country faced freezing weather
conditions, AFP reported. Temperatures have dropped to minus 30 degrees
Celsius, the lowest since 1946. At the same time, the Russian Gazprom company
drastically reduced supplies of gas in order to force Moldova to meet its
debts. Moldova owes Gazprom some $401 million. In neighboring Romania, at least
20 people are reported to have died as a result of the freeze. -- Michael
Shafir

VIDENOV RESIGNS AS BULGARIAN PREMIER, PARTY LEADER. Zhan Videnov on 21
December tendered his resignation as prime minister and leader of the Bulgarian
Socialist Party, international media reported. Addressing the BSP's
extraordinary 42nd congress, Videnov said he did not have the necessary trust
within the party or society as a whole. He added that he will not apply again
for leading posts with the BSP, the government, or the parliament. Videnov's
move surprised both his supporters and opponents, since he had repeatedly said
he would not give up power voluntarily. The congress voted to form a new
BSP-controlled government. At an extraordinary session on 28 December, the
parliament approved the resignation of Videnov's government by a vote of 211 to
three with nine abstentions. Interior Minister Nikolay Dobrev and former
Foreign Minister Georgi Pirinski are considered likely candidates for premier.
-- Maria Koinova in Sofia and Stefan Krause

NEW BULGARIAN SOCIALIST LEADER ELECTED. Delegates to the BSP congress on 24
December elected Georgi Parvanov as new party chairman. Parvanov was deputy
party leader under Videnov. He received 451 votes, while former Foreign
Minister Georgi Pirinski garnered 77 and former deputy BSP leader Yanaki
Stoilov 45. Pirinski and Stoilov both belong to the party's reformist wing.
Some observers consider the 39-year-old Parvanov to be a Videnov confidant,
while others see him as a possible intermediary between the two rival BSP
factions. Parvanov has said he will not seek the premiership. Meanwhile, the
delegates also elected a new Supreme Council, which is comprised of both
Videnov supporters and opponents. -- Maria Koinova in Sofia and Stefan Krause

ALBANIAN PRESIDENT PARDONS 100 PRISONERS. Sali Berisha has declared an
amnesty shortly before the New Year's celebrations, ATSH reported on 29
December. Some 100 prisoners have been either freed or granted reduced
sentences. However, it is unknown whether Socialist Party leader Fatos Nano is
included in the amnesty. Albania's seven prisons currently hold some 1,230
prisoners, including 30 women. Meanwhile, Interior Minister Halit Shamata has
announced that the number of registered crimes decreased by 16% this year as
compared with 1995. The parliament on 23 December adopted a package of laws
providing for sentences of up to 20 years for producing and trafficking in
drugs. Sentences for arms trafficking, rape, tax evasion, and corruption have
also been increased. -- Fabian Schmidt

BACK ISSUES
Back issues of the OMRI Daily Digest are available through the World Wide
Web, by FTP and by E-mail.
WWW
http://www.omri.cz/Publications/DD/Index.html

FTP
ftp://FTP.OMRI.CZ/Pub/DailyDigest/

REPRINT POLICY
To receive a copy of OMRI's reprint policy, contact OMRIPUB@OMRI.CZ or see
the Web page at
http://www.omri.cz/Publications/Reprint.html

OTHER OMRI PUBLICATIONS

TRANSITION
OMRI publishes the biweekly journal TRANSITION, which contains expanded
analysis of many of the topics in the OMRI Daily Digest. For subscription
information send an e-mail to TRANSITION@OMRI.CZ or visit the Transition Web
page at
http://www.omri.cz/Publications/Transition/Index.html

OMRI ECONOMIC DIGEST
The OMRI Economic Digest is for those who need more detailed economic news
from the region. There is a four-week free trial subscription available; for
more information, write to ECON@OMRI.CZ or go to the OMRI Economic Digest Web
page at
http://www.omri.cz/Publications/ED/Index.html

RUSSIAN REGIONAL REPORT
The Russian Regional Report is a weekly publication (published every
Wednesday) initially focusing on the local elections taking place throughout
Russia during the Fall of 1996. After the election season is over, the Russian
Regional Report will continue, turning to broader social, political, and
economic issues of Russia's regions. To subscribe, please follow these
instructions: 1) Compose a message to:
MAJORDOMO@OMRI.CZ
2) In the body of the message, write:
SUBSCRIBE REGIONS Your Name
Fill in your own first and last names where shown 3) Send the
message

PURSUING BALKAN PEACE
Pursuing Balkan Peace contains the latest news about developments in the
Republic of Bosnia-Herzegovina and the other countries of Southeastern Europe.
Published every Tuesday, it contains both brief news summaries and longer
essays on specific events or issues facing the people of the region. To
subscribe, please follow these instructions: 1) Compose a message to:
MAJORDOMO@OMRI.CZ
2) In the body of the message, write:
SUBSCRIBE BALKAN-PEACE Your Name
Fill in your own first and last names where shown 3) Send the
message

RUSSIAN-LANGUAGE TRANSLATION OF THE OMRI DAILY DIGEST The full text of the
OMRI Daily Digest is translated into Russian and distributed the following
day.
1) Compose a message to:
MAJORDOMO@ISF.RU
2) In the body of the message, write:
SUBSCRIBE OMRI Your Name
Fill in your own name where shown
3) Send the message